Well depreciation, do the mineral owners get a tax break?

Accounting and Taxes
1

I noticed that the Oklahoma Corporate Commission has a well depreciation form for the oil & gas companies.

Do the mineral owners get to take avantage of the depreciation also? How is this deduction passed on to the mineral owner?

2

Mr. Thompson, are meaning in addition to the 15% depletion you can claim on your federal income tax ?

3

Well, there you go, I did not know that I could take a 15% depletion on my federal income tax, but I will just follow the law;)

Could I take any kind of depreciation?

4

Mr. Thompson, I would be surprised if you could take depreciation if you are leased because you don't own the rig or the oil/gas, only a royalty interest in the production of oil/gas.

5

That make sense.

6

Daneil,

See link: http://www.mineralrightsforum.com/forum/topics/depletion-allowance